Posted on: 19/03/2019
Business could save up to £2.5 billion a year by improving their energy efficiency under a series of proposals outlined by the UK Government.
Chancellor Philip Hammond confirmed plans for a new business energy efficiency scheme as part of his spring statement which included a raft of environmental measures.
"As with the challenge of adapting to the digital age, the challenge of shaping a carbon-neutral economy of the future is pressing," Hammond said.
"We must apply the creativity of the marketplace to one of the most complex problems of our time – climate change – and build sustainability into the heart of our economic model."
Ministers want companies to make energy efficiency savings of at least 20% by 2030. They have now launched a call for evidence on their proposals, which closes on 8 May.
Trio of suggestions
The three proposals put forward by the government are:
● an energy efficiency auction, through which energy service companies or energy efficiency installers could bid to deliver energy saving measures for smaller companies;
● a business version of the current domestic energy company obligation (ECO), which would require network operators, energy suppliers or other third parties to deliver energy efficiency savings for small businesses;
● or expanding access to green funding for small businesses so they can invest in energy efficient property, equipment or services.
SMEs have ‘very low awareness’
BEIS said: “Small and medium-sized enterprises (SMEs) account for 99% of UK business and have a very low awareness of the benefits of energy efficiency."
“Through the modern Industrial Strategy, we’re creating the right conditions for small businesses to thrive and exploiting the global shift to clean growth."
“These proposals could help firms from hairdressers to pubs save up to a total of £2.5 billion a year on their energy bills through energy efficiency measures while reducing emissions – a win-win for the environment and the UK’s dedicated entrepreneurs.”